Arteris (AIP) Q2 2026 earnings summary

Executive summary

• Achieved record annual contract value plus royalties of $99.5 million, up 44% year-over-year, with record revenue, royalties, and RPO backlog for Q2 2026.

• Q2 2026 revenue was $24.1 million, up 46% year-over-year, driven by new customers, expanded license arrangements, and the Cycuity acquisition.

• Customer design activity increased 21% year-over-year, driven by demand for AI, HPC, and enterprise computing chips.

• Major wins included a hyperscale cloud company standardizing on Arteris, a top U.S. semiconductor design house adopting Arteris for chiplet and multi-die chips, and expanded partnerships with Arm, Li Auto, and SiEngine.

• Completed $72 million ATM fundraising to support investment in IP products, customer support, and acquisitions; announced Saurabh Sinha as new CFO, effective September 8, 2026.

Financial highlights

• Q2 2026 revenue was $24.1 million, up 46% year-over-year, exceeding guidance.

• Trailing 12-month royalties reached $8.6 million, up 65% year-over-year.

• ACV plus royalties at quarter-end was $99.5 million, up 44% year-over-year.

• RPO at quarter-end was $135 million, with over half expected to be recognized as revenue in the next 12 months.

• Non-GAAP gross profit was $21 million (87% margin); GAAP gross profit was $20.5 million (85% margin).

• Non-GAAP operating loss was $4.6 million; GAAP operating loss was $13.9 million.

• Non-GAAP net loss was $4.7 million ($0.10/share); GAAP net loss was $14.1 million ($0.30/share).

• Ended Q2 with $123 million in cash equivalents and investments, no debt.

• Positive free cash flow of $8.6 million in Q2; trailing 12-month free cash flow was $6.8 million.

Outlook and guidance

• Q3 2026 guidance: ACV plus royalties $99–$103 million, revenue $24–$25 million, non-GAAP operating loss $1–$3 million.

• Full-year 2026 guidance: ACV plus royalties $102–$106 million, revenue $95–$98 million (37% year-over-year growth at midpoint), non-GAAP operating loss $7–$10 million, non-GAAP free cash flow $5–$9 million.

• Expecting non-GAAP operating profit as early as Q4 2026.